RALEIGH, N.C., June 23, 2026, 04:21 EDT
Duke Energy Carolinas lowered its proposed residential rate hike to 11.6% from 18% on Monday. The change came after pushback from North Carolina Attorney General Jeff Jackson, regulators, other parties, and customers. The rate increase still requires approval from the North Carolina Utilities Commission.
The commission scheduled the expert-witness hearing for July 7 in Raleigh for Duke Energy Carolinas’ rate case, E-7 Sub 1329. New rates could start Jan. 1, 2027. The case involves performance-based regulation, a multi-year setup where the utility can recover approved costs and is evaluated by targets.
North Carolina electricity demand is rising, following years of slower growth. A state energy task force said Duke’s two North Carolina systems could see net load jump 16% to 60% in the next 15 years. Data centers account for 30% of Duke’s tracked economic-development project pipeline, but 80% of projected energy demand from those projects, according to the report. The report also points to Dominion Energy, which uses a different method to forecast large load projects.
“Our case was that Duke could afford a lower rate while still meeting its needs. Duke just agreed,” Jackson said. He said the new request remains “still too high,” and said his office plans to keep pushing to protect households from costs linked to data centers and other large users. Sandhills Sentinel
Jackson filed to oppose Duke’s 10.95% requested return on equity, the authorized profit level for utility infrastructure. His office proposed a 7.4% rate, estimating $1.37 billion in customer savings over two years, or $435 per residential bill. Expert Edward Burgess testified Duke’s rate would be far above inflation.
The Southern Environmental Law Center, speaking for consumer and clean-energy groups, supported a 9.1% return. That backed Jackson, consumer groups, and environmental organizations together on the main issue, though numbers didn’t fully match. They said Duke could raise funds for its projects without needing the higher profit it requested.
Duke described its request as focused on reliability and growth, not only price. “Our goal is to deliver reliable power at the lowest possible cost for customers,” Duke Energy North Carolina President Kendal Bowman said in the company’s November filing. Duke Energy Investors
Duke Energy Carolinas asked regulators for an extra $1.0 billion in annual retail revenue over two years, according to a securities filing. The filing said the company’s plan also involved about $4.4 billion in North Carolina retail capital projects. About $155 million of the request was tied to return on equity and capital structure, the document said.
A dispute over data centers sharpened the tone of the case. At a June hearing in Durham, Duke spokesman Jeff Brooks told the commission, “residential customers should not pay for data centers.” Protesters and consumer groups pushed back, saying households might still face costs from the utility if grid expansions are too big or come at the wrong time. WUNC
The case could still go against Jackson. Duke says its investments are necessary for a growing state and to keep the grid reliable, and regulators may find deeper cuts bring financing risk or push back grid projects. There’s also risk if projected demand is too high—customers could end up paying for infrastructure that’s slow to help or never fully needed.
Duke Energy Progress, which operates in North Carolina, remains in focus. Duke wants to merge Duke Energy Carolinas with Duke Energy Progress. The company says a combined utility could cut customer costs by over $1 billion through 2038, pending regulator approval.
Regulators can sign off on, cut, or turn down Duke Energy Carolinas’ rate request. Customers could see updated rates on Jan. 1, 2027, if officials pass a version. If regulators approve a lower rate than Duke’s new proposal or the figure recommended by Jackson, household bills and Duke’s expected revenue could change ahead of the final order due this fall.
